U.S. equities moved higher at the start of the first full trading week of the year, as investors weighed the market impact of rapidly evolving geopolitical developments in Venezuela.
By mid-morning trading, the Dow Jones Industrial Average was up 466 points, or 1.0%. The S&P 500 gained 0.6%, while the tech-heavy Nasdaq Composite advanced 0.5%.
Wall Street ended the final session of last week modestly higher, as the first trading day of 2026 was supported by gains in major semiconductor names, including Nvidia and Intel. Both the Dow and the S&P 500 snapped four-day losing streaks.
Markets are now watching closely to see whether U.S. stocks can extend their winning streak into another year. All three major indexes posted double-digit gains in 2025, marking a third consecutive year of advances — a run last seen between 2019 and 2021.
Oil prices were volatile during European trading after news that U.S. forces captured Venezuelan leader Nicolás Maduro over the weekend and announced plans to temporarily oversee the country.
Brent crude futures rose 1.2% to $61.47 a barrel, while U.S. West Texas Intermediate crude gained 1.4% to $58.14. Both benchmarks had traded lower earlier in the session.
Crude markets are still recovering from a difficult 2025, when oil prices fell more than 18% amid concerns about oversupply and weakening global demand.
Maduro is expected to face drug trafficking charges in New York following his capture. U.S. President Donald Trump said Washington would manage Venezuela until new leadership is installed, adding that major U.S. oil companies would be permitted to re-enter the country.
Shares of U.S. energy firms including Chevron, ExxonMobil, and ConocoPhillips rose in early trading.
Venezuela holds the world’s largest proven oil reserves, but production has deteriorated due to aging infrastructure and long-standing U.S. sanctions.
Analysts say uncertainty surrounding a potential U.S.-backed political transition in Venezuela has reinforced demand for the U.S. dollar’s liquidity. Trump also warned on Sunday that further military action could follow if Venezuela’s interim authorities fail to cooperate.
Speaking aboard Air Force One, Trump also raised the possibility of action against Colombia over drug trafficking and reiterated his stance on Greenland’s strategic importance.
Key U.S. data in focus
Attention now turns to U.S. employment data for December, due later this week. Economists expect payrolls to have increased by around 57,000 jobs, down from 64,000 in November. October saw the sharpest drop in nearly five years following government-related spending cuts.
Monthly jobs reporting is expected to normalize after delays caused by a prolonged government shutdown. Notably, October’s report omitted an unemployment rate for the first time since records began in 1948.
The Federal Reserve cut interest rates at each of its final three meetings in 2025, prioritizing labor market weakness over persistent inflation concerns. While expectations for lower rates have supported equities, policymakers remain divided on the outlook for 2026.
Later Monday, investors will also review fresh manufacturing data. The Institute for Supply Management is expected to report a December manufacturing PMI of 48.3, slightly above November’s reading but still signaling contraction. The prices-paid component is also forecast to edge higher.
